Hello Friends! I’m having a WONDERFUL day and I hope you are as well.
I’m here today to speak to you about something very important about your tax returns. Yes I know….BORING! But this could save you penalties and keep you from receiving IRS letters, years later, yes I said years later. So do I have your attention NOW!
Ok, let me start by saying YOU ARE RESPONSIBLE FOR YOUR TAX RETURN even if it was prepared by someone else. By me saying that – it means if your preparer files a false income tax return by claiming inflated personal and business expenses, false deductions, unallowable credits or excessive exemptions, that is considered return preparer fraud. Some even manipulate income figures to obtain tax credits, such as completing a fraudulent schedule C with false income to obtain credits such as the Earned Income Tax Credit. TIP: If you didn’t have a business and you notice a Schedule C within your income tax return you may want to ask questions.
Some of you (taxpayers) may not have knowledge of your tax preparer doing this but when the IRS detects the false return, the taxpayer “client” –not the preparer– must pay the additional taxes and interest and may be subject to penalties.
So be very careful when choosing a tax preparer. Remember even if someone else prepares a tax return, the taxpayer is ultimately responsible for all the information on the tax return.
Don’t get me wrong tax preparers do get caught and in some cases get sentenced to prison. So if you suspect tax fraud or know of an abusive return preparer, report the activity using IRS Form 3949-A and send it to: IRS, Fresno, CA 9388. Don’t worry you’re not required to identify yourself, but it is helpful. Below are some helpful tips on choosing a return preparer.
- Be cautious of tax preparers who claim they can obtain larger refunds than other preparers.
- Avoid preparers who base their fee on a percentage of the refund. Use a reputable tax professional who signs the tax return and provides a copy.
- Consider whether the individual or firm will be around to answer questions about the preparation of the tax return months, or even years, after the return has been filed.
- Check the person’s credentials. Only enrolled agents (EAs), attorneys and certified public accountants (CPAs) can represent taxpayers before the IRS in all matters, including audits, collection and appeals. Other return preparers may only represent taxpayers for audits of returns they actually prepared.
- Find out if the preparer is affiliated with a professional organization that provides its members with continuing education and resources and holds them to a code of ethics.
Well my friends it was a pleasure sharing this with you. Please don’t hesitate to contact me for any reason at firstname.lastname@example.org or leave a comment. Have a Wonderful Day!